Transactions via Instapay, PESONet hit PHP 15.6T

The value of transactions done through InstaPay and PESONet jumped to PHP 15.62 trillion as of end-November, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Transactions coursed through the two automated clearing houses climbed by 35.2% in the January-to-November period from PHP 11.56 trillion in the same period a year ago.

Meanwhile, the combined volume of transactions done via InstaPay and PESONet surged by 62.3% to 1.34 billion from 824.86 million.

Broken down, the value of PESONet transactions rose by 28.3% to PHP 9.09 trillion as of November from PHP 7.08 trillion in the same year-ago period.

The volume of transactions that went through the payment gateway also increased by 10.2% to 91.77 million from 83.3 million.

On the other hand, the total value of transactions done through InstaPay jumped by 46.2% to PHP 6.54 trillion as of end-November from PHP 4.47 trillion in the previous year.

The volume of InstaPay transactions stood at 1.25 billion in the January-November period, soaring by 68.2% from 741.56 million the previous year.

PESONet and InstaPay are automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System framework.

PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks.

On the other hand, InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to PHP 50,000 and is mostly used for remittances and e-commerce.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the consistent rise in Instapay and PESONet transactions was due to the increasing preference for digital payments versus over-the-counter transactions.

“The continued strong year-on-year growth in InstaPay and PESONet transactions may be largely supported by and consistent with the continued strong growth in online transactions, also reflecting the shift from physical payments and queues to use of bank and other payment apps,” he said.

Digital payments made up 52.8% of the volume of retail transactions in 2023, latest BSP data showed, higher than the 42.1% share in 2022.

This was also slightly higher than the central bank’s target of digitalizing 50% of the volume of retail payments by end-2023.

In terms of value, 55.3% of retail transactions last year were done online, rising from 40.1% the year prior.

Ronald B. Gustilo, national campaigner of Digital Pinoys, said that this also reflects the “growing trust and convenience in digital payments.”

“The government’s initiatives to promote financial inclusion and digitization created an enabling environment while fintech companies and banks offered user-friendly digital payment platforms,” he said in a Viber message.

“The public’s shift towards digital-first solutions, driven by tech-savvy youth and increasing smartphone penetration also helped increase use of digital payment platforms,” he added.

Mr. Gustilo said e-payments will continue to persist amid improved digital infrastructure, broader internet access, and increased public awareness of the shift to cashless.

“However, addressing digital fraud and ensuring inclusivity will sustain this momentum,” he added.

The central bank wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028, in line with the Philippine Development Plan. – Luisa Maria Jacinta C. Jocson, Reporter